Income protection insurance can replace part of your earnings if illness or injury prevents you working and you meet the policy’s definition. To compare quotes, start with your own sick-pay timetable. An employee on full pay for several months has a different gap from someone whose earnings depend on completing the next job.
When would your sick pay run out?
Ask your employer for the dates when full pay would reduce or stop. Write down what would come in after each date, then compare it with essential spending. If you work for yourself, allow for invoices that are still due, the time it takes customers to pay, and business costs that could continue while you are off.
Imagine your essential bills are £1,900 a month and household income would fall to £1,200 after sick pay reduces. That leaves £700 a month to find. Savings of £2,100 could cover that gap for about three months if nothing else changes. The example gives you a way to compare dates rather than guessing how long your savings would last.
When would an eligible claim start and finish?
The deferred period is the time you must meet the policy conditions before benefits become payable. Ask when the first payment would actually reach your account. Then check the maximum length of a claim. A policy that can pay for two years has a different role from one that could pay until a selected end date, subject to its terms.
What does “unable to work” mean in the policy?
Ask how the insurer assesses your ability to do your occupation and which earnings it would use to calculate a benefit. If your income varies, ask what evidence it needs and over which period. Check how employer benefits or other income could affect payments. MoneyHelper’s income protection guide sets out the main features to compare.
What should I bring to a review?
Gather your sick-pay terms, earnings evidence, monthly budget and details of existing cover. If your concern is a lump sum following a specified diagnosis, read our critical illness guide. If you are looking at the mortgage and other household commitments together, explore Greenacre’s mortgage protection service or arrange an income protection review.